Debt Consolidation

Debt Collector Laws – Practices That Are Off Limits For Collection Authorities

When creditors fail to collect debts from borrowers, they hire some professionals for collection. But, there are certain debt collector laws applicable in this regard to regulate the kind of activities these collection authorities may and may not get involved in. There are certain practices that are prohibited under the law. Following is a brief rundown on it.

Harassment

The collection professionals are allowed to contact you or a third party (basically to locate you), but they may not abuse, oppress, or harass anyone. Practices that are legally considered as harassment include making repeated phone calls to annoy someone (whether it is you or a third party), use of profane or obscene language, and threatening harm or violence. Besides that, they may also not publicize the names of the people who are not paying their debts in time. As per , the only situation when they may publish a list of all those defaulters is when they have to submit these details to credit report agencies.

Manipulating Information Or Making False Statements

In an attempt to collect debts, some collection authorities tend to lie and make false statements. These practices are also prohibited under the law even if those lies do not directly harm the borrower. For example, if they are sending some legal forms, they may not indicate that those papers have no legal value. Likewise, if they are sending some papers that are not legal forms, they may not indicate that they are legal forms. They are also prohibited from misrepresentation of the outstanding amount you owe. The debt collector laws also prohibit them form making false claims that they work or operate for a credit report agency or that they are government representatives or lawyers.

Threatening Criminal Lawsuits

Sometimes, these professionals may also try to terrify you by making false claims that you have committed a crime. Such practices are also illegal under the US laws. It is very important for you to keep in mind that not making timely repayment of a loan is not a criminal activity. No can be placed against you, but yes, the lenders or the collectors may file civil lawsuits if needed. But again, you cannot be sent to jail. If the collectors threaten you that you will be sent to jail, you can take legal actions against them. Some possible consequences of not paying the debts may include selling off some of your assets or properties by bank order or a forced bankruptcy. Please note that collectors do not have the right to sell or size your properties or garnish your wages without court order.

Debt collector laws in the United States of America prohibit collection authorities from several other unfair practices also. For example, they may not work under a false company name. They may not contact you by postcard. They may not deposit a post-dated check early. If a collector is engaged in any unfair practices that have been discussed above, you can file an FIR against them.


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Posted in Debt Collection Harassment, Debt Consolidation | 2 Comments »

2 Responses to “Debt Collector Laws – Practices That Are Off Limits For Collection Authorities”

  1. [...] just want to collect the outstanding balance along with interest and fees as applicable. The FDCPA (Fair Debt Collection Practices Act) applies to these lenders also. The Act constitutes of federally mandated rules of conduct, which [...]

  2. Peter says:

    Very important and knowledgeable article. Debt Consolidation companies are very famous for some wrong reasons actually. The debt collection has now become an essential part of the lives of some people. Creditors hire debt collectors to help them to get their money back and they start to do the harassment of debtors. The life of debtors become very tense and they start thinking to pick any phone call or not. It is good to know that there are debt collector laws which can prove to be very helpful for the debtors. Every body must be aware of these laws. According to these laws, the professionals of debt Collection Company can give you a call but they are not authorized to use abusive language or making any false statements. In case of they try to threaten you on the criminal grounds, this is also totally illegal. They can not file any criminal case against debtors who can not do the repayments in time. So it is our duty to fight against such illegal activities.

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